Just how much of an impact does Nvidia have on the S&P 500?

It’s no secret that Nvidia (NASDAQ:NVDA), one of the Magnificent 7 stocks, has a significant impact on the overall landscape for the broader S&P 500 (SP500). But just how much?

Japan’s largest investment bank and brokerage group, Nomura, highlighted in an investor note that Wednesday’s 8.2% jump in shares of Nvidia (NVDA) contributed to nearly half of the daily returns that the S&P 500 (SP500) generated that day.

“How large was the NVDA stock move contribution to overall US Equities Index moves yesterday [Wednesday]? It was an absolutely hilarious 44% of the S&P’s 1.1% return on the day, and 27% of the Nasdaq’s +2.2% chg,” Charlie McElligott, Managing Director, Cross-Asset Macro Strategy at Nomura, said.

The demand for the chipmaker seems to be growing day-by-day, as the stock now represents 6.25% of the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), which is the world’s largest ETF that mirrors the price movements of the benchmark SP500.

In regard to demand for NVDA’s products, Jensen Huang, CEO of the chip making giant, at a Goldman Sachs conference on Wednesday stated: “Demand is so great that delivery of our components and our technology and our infrastructure and software is really emotional for people because it directly affects their revenues, it directly affects their competitiveness.”

Moreover, for investors that want a more diversified approach towards Nvidia (NVDA), they can look towards exchange-traded funds. Currently, NVDA is held by 529 ETFs. Outlined below are the five funds that have the largest portfolio allocation towards the stock. Single stock focused ETFs not included.

ETFs with Largest Allocation Towards NVDA

• ProShares Ultra Semiconductors (USD) at 38.19%.
• Strive U.S. Semiconductor ETF (SHOC) at 28.02%.
• AXS Esoterica NextG Economy ETF (WUGI) at 22.28%.
• Simplify Volt RoboCar Disruption and Tech ETF (VCAR) at 20.82%.
• VanEck Semiconductor ETF (SMH) at 20.51%.

Price action for Nvidia (NVDA) stock: +165.5% over the past year, +140.7% on a YTD basis, +29.6% over the past 6 months and +1.1% over the past 1 month.